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[Interpretation of the Special Equipment Safety Law] Article 55

2021-04-01View Original

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Article 55 Special equipment inspection and testing institutions and their inspectors and testers shall be obligated to keep confidential any trade secrets they become aware of during the inspection and testing process. Inspection and testing institutions for special equipment, as well as their inspectors and testers, shall not engage in any activities related to the production or operation of such equipment, nor shall they recommend, produce, or market special equipment. Interpretation of the provision: This article sets out the regulations regarding the standards of conduct for inspection and testing agencies as well as their personnel. I. Obligation to keep confidential any trade secrets learned during the inspection and testing process. Inspection and testing agencies and their personnel, in carrying out supervision inspections and tests during manufacturing, installation, modification, or repair processes, as well as conducting regular inspections of special equipment in use by end-users, may come into contact, as part of their duties, with design documents, technical documents, or various business-related materials related to the design, manufacturing, installation, modification, or repair of the special equipment under inspection. For the design of new products, the manufacturing materials must be inspected and reviewed by qualified inspectors; during the supervision and testing of production, these inspectors have access to information of commercial or proprietary value related to the manufacturing processes and techniques, as well as to information regarding modifications, repairs, sales, and other matters. If inspectors and testers lack good professional ethics and integrity, and fail to adhere to professional standards when faced with interests, it will inevitably cause huge losses to the enterprise. Therefore, this law stipulates that special equipment inspection and testing institutions, as well as their inspectors and testers, have an obligation to keep confidential any trade secrets they become aware of, which also serves to protect the interests of enterprises. II. It is prohibited to engage in activities related to the production and operation of special equipment, as well as to recommend, produce, or supervise the sales of such equipment. Given the nature of the work carried out by special equipment inspection and testing agencies and their personnel, it is necessary to ensure the fairness of their inspection and testing tasks. This is to prevent them from using the information they obtain through these inspections and tests, along with the powers they possess, to seek unfair advantages outside of their official duties, or to create unfair competition that harms the interests of other organizations. This provision states that special equipment inspection and testing agencies and their personnel shall not engage in production or business activities. This means that such agencies are not allowed to establish entities engaged in the production or operation of special equipment, nor may they form an economic partnership with such entities or become shareholders of them. They also cannot participate in the sales activities of such production and operation units, nor act as agents for certain companies. In addition, special equipment inspection and testing agencies shall not promote the products of the enterprises they inspect and test by issuing certification documents for product supervision or marketing, or by organizing product promotion events for those enterprises. Inspection and testing personnel from special equipment inspection and testing agencies shall not promote corporate products to their clients, nor shall they participate in any form in the production or business operations of such companies. They must not hold shares in or invest in enterprises, nor act as agents or salespersons for corporate products. The prohibitive provisions in this article regarding inspection and testing personnel apply to institutions that provide non-destructive testing services specifically for the production, use, inspection, and testing of special equipment, as well as their personnel; however, they do not apply to the testing activities carried out by special equipment manufacturing units and their personnel.

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